Complete Guide to Starting a Business in Florida — What Legal Documents do I Need?
The topic that scares most entrepreneurs away from launching their startups is legal responsibility. No one knows at the beginning the legal processes required to set up a business, and most of the time you want to be working on growing your sales rather than growing the stack of paperwork on your desk. But all business owners are responsible for following the laws and procedures of their state. Florida requires only a few legal documents, but there are several you should prepare as you start to grow your enterprise:
Fictitious Name Registration. In Florida, sole proprietorships are required to apply for a fictitious name certificate. Also known as your“Doing Business As,” (DBA) name, you must register this and place an advertisement in a local newspaper in your primary.
Professional licenses. You will need to research your industry to determine what licenses you need to operate lawfully in Florida. The Florida Department of Business and Professional Regulation has plenty of information on the largest industries in Florida to guide you through the legal process for each license your business will require.
Memorandum of Understanding. An MOU is not a legally binding document, but it is used to help solidify partnerships between your company and other organizations. You can ask partners to sign or create an MOU as a first step towards creating a legally binding contract.
Privacy Policy/Terms and Conditions. If you are developing your own website, you need to have someone write the privacy policy and terms of use for it. This is especially important for ecommerce and sites that may take a user’s personal information.
Employee Handbook/Agreements. Once you have enough business to hire employees, you will need to write employee agreements for them to review and sign. The agreement should detail the expectations, correctional procedures, benefits and other company regulations.
Nondisclosure/Noncompetition Agreements. All companies have trade secrets or intellectual property they need to protect. A nondisclosure agreement safeguards you from your employees who may have access to this information and the ability to share it. Some industries also have their employees or subcontractors sign a noncompetition, to ensure your employees are not sharing information to your competitors.
Corporations have additional legal documents they must provide. A corporation is considered a separate entity from the individuals who own or manage it. To set up your business as a separate legal entity, you need to file Articles of Incorporation, or an Operating Agreement (for LLCs). Corporations should also write bylaws to detail the hierarchy of their executive staff, and track meeting minutes for company audits.
If you have any questions about how to set up a business in Hardee County, click here for more information. In the next section, we will cover when to consult an attorney for setting up your business entity.
